Said Hance, "I think it's a mistake (not to award the contract to AT&T). This system, I should think, will certainly last longer than seven years and once we pass that point, we lose money."

Hance conceded one point to authority Executive Director Paul Zimmerman, who noted, "We don't know what future costs will be."

Zimmerman's calculations disputed Hance's contention that seven years would be the end of the break-even point. According to Zimmerman, 13 1/2 years will lapse before the break-even point is reached between the successful low bidder's quotation and that of AT&T.

AT&T, meanwhile, listed a five-year cost of $23,466, including a five-year maintenance cost of $2,205.

Another aspect in favor of Chadwick was its offer of speaker phones, an item listed as optional equipment by all other bidders.

Other quotations received included a five-year package cost of $20,461 with a five-year, $4,920 maintenance agreement from Executone of Allentown and a five-year package cost of $24,292 with a five-year, $4,048 maintenance agreement from Eastern Telephone & Telecommunication of Allentown.

In other business, the authority approved a fiscal 1985-86 operating budget of $3.6 million, representing an increase of about $100,000 over the current operating budget of $3.5 million. The budget is still subject to federal Department of Housing and Urban Development approval.

The proposed budget reflects an increase in in-lieu-of-tax payments to the city, Allentown School District and Lehigh County. The authority expects to make a 1985-86 fiscal year payment of $79,610, which compares to a projected payment of $64,000 for this fiscal year.

Zimmerman apprised the authority of a concern received from Dennis Pearson, president of the East Allentown-Rittersville Neighborhood Association.

Pearson advised that adults and youngsters coming out of Hanover Acres take a shortcut down "a steep grade," which "can be considered dangerous or hazardous" under certain conditions. The association president indicated steps were there at one time but they wore out and have not been replaced.

Zimmerman told the authority the area in question "belongs to the city, not the authority. The mayor has been apprised of that fact."

The authority awarded a contract to Manesis Painting of Bethlehem to repaint authority housing units as they become vacant. The Bethlehem firm was the low bidder of five quotes offered for the contract.

Zimmerman explained, "We've determined it will be less costly to paint the vacant units using an outside contractor than using the authority's own personnel."

He cited as an example the painting of a one bedroom unit which would take two authority personnel one day to complete at a cost of $146.50 plus fringe benefits, while the low bidder listed a cost of only $90 to paint a one bedroom unit.

Briefly discussing HUD's tight money situation and the related restrictions on the type of public housing funds the federal agency will approve, Zimmerman, noting the city prefers rehabilitation as opposed to new projects, said, "The cost of purchasing property has risen significantly in the city as a result of many rehabilitation ventures. And that fact makes rehabilitation costly.

"In fact, it has almost become an impossibility for us (because) it is simply too expensive for the housing authority to get involved," said Zimmerman.

He pointed out, however, one rather large site is being eyed for possible acquisition for rehabilitation by the authority. "If the site (which he declined to identify) is rejected, I would propose we stay at status quo."